Advanced Life Division
Securing Your Future, One Policy at a Time
Welcome to our Advanced Life Division!
We are extremely excited to be able to assist advisors already using the tax-code strategies of cash-value life insurance, and just as thrilled by the opportunity to teach those who have yet to take advantage of these valuable strategies.
![](https://www.tuckeradvisors.com/wp-content/uploads/2023/08/LIFE-IN-LOGO.png)
![](https://www.tuckeradvisors.com/wp-content/uploads/2023/08/orange-arrow.png)
Hello!
I’m Mike. A Colorado Area Life Insurance Agent with 10+ Years of Experience.
Mike Cheatwood joins Tucker Advisors as one of the country’s premier Life Insurance Specialists. Spending years of his career in a position of competitive analysis and advanced case design, Mike is an expert on all things related to life insurance.
Mike is originally from Denver, Colorado, where he still currently lives with his wife of 22 years and their 7 children. When not hard at work, Mike enjoys spending time with his family doing outdoor activities and attending sporting events.
life insurance planning
We Will Help You in All of These Areas
![](https://www.tuckeradvisors.com/wp-content/uploads/2023/08/hourglass.png)
Term Life Insurance
Term life insurance provides coverage for a specific period, typically 10, 20, or 30 years. If the insured person dies during the policy term, the beneficiaries receive a death benefit.
![](https://www.tuckeradvisors.com/wp-content/uploads/2023/08/forever.png)
Whole Life Insurance
Whole life insurance is a type of permanent life insurance that provides lifelong coverage. It comes with a guaranteed death benefit and a cash value component that accumulates over time.
![](https://www.tuckeradvisors.com/wp-content/uploads/2023/08/directions.png)
Universal Life Insurance
Universal life insurance is another form of permanent life insurance that offers more flexibility than whole life. It allows policyholders to adjust their premium payments and death benefit amounts to adapt to changing financial circumstances.
![](https://www.tuckeradvisors.com/wp-content/uploads/2023/08/investment.png)
Variable Life Insurance
Variable life insurance is a type of permanent life insurance that allows policyholders to invest their premiums in various investment options (e.g., stocks, bonds, mutual funds).
History
Life Insurance at a Glance
Introduction of Universal Life Insurance
No Regulation, Tax Shelter | RED FLAG
TEFRA
Passage of the Tax Equity and Fiscal Responsibility Act (TEFRA) in 1982 established that universal life insurance was, in fact, life insurance. The law defined characteristics of life insurance that must be present.
DEFRA
The Deficit Reduction Act (DEFRA) of 1984 coordinated with language laid out in TEFRA from two years before to establish specific rules about what life insurance was and what life insurance was not.
More specifically, upon DEFRA’s passage, we now had specific limitations on premium size relative to an outstanding death benefit. That Premium to Death Benefit ratio was now the deciding factor as to what qualified or disqualified a life insurance contract as life insurance.
DEFRA included the creation of two tests that would be the guideline moving forward for life insurance qualification & created the inception of the 7702 tax code.
TAMRA
The Technical and Miscellaneous Revenue Act (TAMRA) of 1988 laid out one additional restriction on life insurance. A new test that limited premiums paid to a life insurance policy to the premiums needed to cover all guarantees of the contract spread out over a seven-year period. (This is why we often call it the 7-Pay Test.)
If a policyholder violated this rule by paying more than this amount, he or she didn’t lose his/her policy’s status as life insurance per se. Instead, the policy was reclassified as a Modified Endowment Contract (MEC).
AG49a
-Life insurance illustrations could be presented in the same manner as annuities, using this “cherry picked” sequence of returns.
-Using these “cherry picked” sequence of returns combined with a low loan rate (in a low interest environment), allowed the carriers to show very large arbitrage numbers.
-Deceptive illustrations. Using returns from a timeframe when interest rates were high (meaning higher caps and pars), and putting them against loans from a more current, lower interest rate environment.
AG49b
-Expanded upon the previous guidelines to further restrict what can be shown on life insurance illustrations.
-By limiting how products with interest-linked rate enhancements can be illustrated, essentially doing away with the multiplier concept.
-Further restricted the amount of arbitrage that could be shown, lowering the acceptable illustrated arbitrage from 1% to .50%.
The Consolidated Appropriations Act
-The Consolidated Appropriations Act revised and lowered the required corridor for life insurance under federal guidelines.
-The same premium contribution could now have a significantly lower face amount attached to it.
-Huge benefit to cash accumulation and income planning because you have less stress on the policy from the cost of the death benefit itself.
Tucker Takes Life Insurance to the Next Level
Schedule an Appointment
Estate Protection
Income Planning
Tax Mitigation
College Planning
“Life Insurance is not one size fits all. Carriers all have a portfolio of products built to achieve different goals in different demographics. Understanding the correct product placement is the key to successful planning.”
Mike Cheatwood
Mike Cheatwood | Advanced Life Insurance Division
![](https://www.tuckeradvisors.com/wp-content/uploads/2018/06/Real-estate-agent-icon-white-05.png)
Mike.Cheatwood@TuckerAdvisors.com
![](https://www.tuckeradvisors.com/wp-content/uploads/2018/06/Real-estate-agent-icon-white-07.png)
Phone Number
(720) 838-2632
![](https://www.tuckeradvisors.com/wp-content/uploads/2018/06/Real-estate-agent-icon-white-21.png)
Office
1520 West Canal Court, Suite 100
Littleton, CO 80210